Global Advanced Research Journal of Management and Business Studies (ISSN: 2315-5086) July 2015 Vol. 4(7), pp 285-291

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Original Research Articles

Moderating Effect of Organizational Environment on Intrapreneurial Orientation and Firm Performance

Sylvia Manjeri Aarakit1 and Francis Keneth Kimbugwe2

1Department of Entrepreneurship, Makerere University Business School

2Department of Entrepreneurship, Makerere University Business School

Corresponding author Email: kimayoka@gmail.com

Accepted 13 July 2015


Abstract 

Research shows that the organizational environment helps firms to deal with continuous changes and uncertainty in the market while intrapreneurial orientation is a key attribute for accessing productive resources that motivate intrapreneurs towards business continuity and growth performance since the key likely problems of any firm is growth and survival. Thus, for better performance, firms need to not only be integrated but also lay emphasis on building a cooperative organizational environment. While studies have to a great extent emphasized intrapreneurial orientation as having an impact on firm performance, most of them are based on the context of big corporations in developed countries. The purpose of this study was to examine the moderating effect of Organizational Environment on Intrapreneurial Orientation and Firm Performance. The study population composed of 51 Beverage manufacturing firms and 93 Bakery manufacturing 93 firms in Kampala metropolitan area. The main data collection instrument was self-administered questionnaire, which was distributed to the respondents. The data collected were analyzed using descriptive frequencies, percentages and correlation methods. Results show that organizational environment positively affects the relationship between intrapreneurial orientation (r=.361**, p<.01) and firm performance (r=.527**, p<.01). This means that as intrapreneurs invest more in proactiveness, innovation and risk taking, growth in sales, competiveness in quality, response to customer needs and survival will be enhanced in the business.  It is recommended that small firms should focus on creating an entrepreneurial environment that enables employees to voice out their endeavors and discoveries. This can be done through enhancing organizational structures, reward system and resource supply. Further, establishing realistic structures allows open communication, autonomy and transparency within the firm. Adoption of commensurate reward systems motivates employees towards novelty and commitment while adequate resources especially time will encourage generation and commercialization of new and improved ideas.

Keywords: Organizational Environment, Intrapreneurial Orientation, Firm Performance

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